What is fed?

Fed is like a big group of grown-ups who help decide how much money should be used in our country and when.

Imagine you have a piggy bank full of coins. Sometimes you want to save some for later, and sometimes you want to spend it right away. The Fed is like a team that helps manage the piggy bank for everyone in the whole country, not just you, but all the kids, parents, and shops too.

The Fed has special tools to help with the money:

• They can give out more coins (like when you get an allowance).
• Or they can take some coins away (like when you have to save for a new toy).

This helps make sure that people can buy things easily, and shops can keep selling them without getting too worried.

Sometimes, if there's not enough money going around, the Fed will do something to help, like adding more coins into the piggy bank so everyone has enough to spend.